sr-061411-3oCity Council Meeting: June 14, 2011
Agenda Item: ~" ~
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject:. Purchase of OEM Cummins Engine Parts
Recommended Action
Staff recommends that the City Council award Bid #3035 to Cummins Cal Pacific, LLC a
California-based company, for the purchase and delivery of Original Equipment
Manufacturer (OEM) Cummins engine parts for athree-year term, for a total amount of
$900,000.
Executive Summary
Staff recommends award of bid to Cummins Cal Pacific, LLC for the purchase and
delivery of OEM Cummins engine parts used to maintain and repair transit fleet at
specified unit prices plus applicable sales tax. The total expenditure for the three-year
term is $900,000.
Discussion
The City's fleet of transit buses requires routine engine maintenance and repair. To
ensure proper engine performance and compliance with state and federal emission
rules and regulations, the Big Blue Bus purchases genuine Original Equipment
Manufacturer (OEM) parts. The Cummins natural gas engines have several hundred
parts that make up the engine component. The engine parts will enable the Big Blue
Bus to service and maintain the engine to manufacture specifications and ensure proper
operation.
Vendor Selection
In April 2011, the City published Notices Inviting Bids to OEM Cummins Engine Parts as
required by the Big Blue Bus division in accordance with City specifications. The bid
was posted on the City's on-line bidding site and notices were advertised in the Santa
1
Monica Daily Press in accordance with City Charter and Municipal Code provisions.
Four bids were received and publicly opened on April 18, 2011 per Attachment A. Bids
were evaluated based on unit cost, discount off manufacturers' list pricing and the City's
experience with the vendor. Cummins Cal Pacific offered the lowest overall pricing and
greatest discounts. Based on these criteria, Cummins Cal Pacific LLC is recommended
as the best bidder.
Financial Impacts & Budget Actions
The purchase order amount to be awarded to Cummins. Cal Pacific LLC., for the three-
year term is $900,000. Funds are included in the FY 2011-13 proposed budget
submitted for review and approval. Funding for subsequent years will be requested in
each biannual budget cycle for Council approval.
Prepared by: Kellee Mac Donald, Senior Buyer
Approved:
Carol Swindell
Director of Finance
Forwarded to Council:
-zS~
Rod Gould
City Manager
Attachments: Attachment A -Pricing
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Attachment A
BID# (3035 BID CLOSE DATE: 4/18/2011
BID TITLE: FURNISH&DELIVER NEW OR REMANIIFArtuRFn nFM rllnnnnlNC rnicmm onox nc ocn~~~o~~o„r.~~„„-~~~~. ,.,..
Muncie Relcematmn & Supply tlba Munice
'[ran4if Supply
' Northpmerican 6#s lndustri¢v Harhor Oie5e1&Equipmant ~ Cummins 2aJ Pacifjc
-MUnc(e, /N Pe(pwoCe, OH Long Beiich, La Downey, CA
UNIT COST UNIT COST UNIT COST
UNIT COST NEW REMANUFACTURED UNIT COST NEW REMANUFACTURED UNIT COST NEW REMANUFACTURED UNIT COST NEW UNIT COST REMANUFACTURED
$ 54.11 $ 55.15 $ 53.19
$ 49.91
$ 129.21 $ 129.91 $ 125.30 $ 11].]6 SOLD AS NEW ONLY
only avail. as NEWT PART#38009]6 PART#38009]6
$ 576.0]
$ 628.]5 $ 642.13 $ 619.31 PART#3931]10
SUPERSEDED PART
.NUMBER
$ 318.16 $ 331.6] $ 312.31 $ 293.53
$ 983.08
$ 1,318.35 $ 1,095.83 $ 1,321.09 PART#499]684
SUPERSEDED PART
NUMBER
$ 2,141.61 $ 2
173
55
,
. $ 2,096.2] $ 2,054.22 $ 1,942.43 NX=$1,922.08 ll
OUTRIGHT
(Prog. Chg $300) (rare 4]5.20) y
CORE=$96800 J $2,390.08
$ 20.01 $ 18.61
$ 6].99 $ 20.]4 PART#4989131 PART#4989131
SPARK PLUG BOOT SUPERSEEDED PART
NUMBER
$ 495.88 $ 503.39 $ 48].]] $ 953.60
$ 196.80 $ 202.54 $ 195.34 $ 181.70
$ 1,812.06. $ 1,8]3.01 $ 1,]63.]1
$ 1,640.56
$ 110.]] $ 11268 $ 108'89 $ 101.90
$ 54.04 $ 54.60 $ 52.6] $ 99.00
PART#4955850 PART #4965860
$ 931.81 $ 9]6.22 $ 1,052.86 $ 919.25 $ 988.00
PART#4946293
("NEW"PART
(Core Chg. $150) (core 132.00) NUMBER
0%T00% 15.3%TO CUMMINB OH PRICE LIST DEALER NET PLU614% 28%APPROX.
INCLUDED INCLUDED NOT INCLUDED NOT INCLUDED
CCP SHIPS CARRIER FOR PART SALES.
PRICING FOR SHIPPING IS BASED ON WEIGHT & SIZE OF
SIPMENT. THERE IS NO MARK UPON SHIPPING FEES.
PARTS THAT MUST BE RUSHED RECEIVER 1 ]% "ENGINE
DOWN" CHARGE (COVEftB NEXT pAYSHIPPINGJ.
NET 30 NET 30 NET 30 NET 30